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The correct answer is that password update frequency is determined by organizational policy under the HIPAA Security Rule.
HIPAA does not mandate a specific timeframe for how often passwords must be updated. Instead, it requires covered entities and their business associates to implement appropriate security measures based on their individual risk assessments and operational needs. This gives organizations the flexibility to establish their own policies in line with their specific risk and security requirements.
By allowing organizations to set their own policies, HIPAA emphasizes the importance of tailored security measures that consider the unique nature and context of each entity's operations. Therefore, the choice of updating passwords every 30 days, quarterly, or annually could all potentially fulfill the requirements of the HIPAA Security Rule as long as those intervals align with the established organizational policies that are based on a thorough risk analysis.